The Mozambique Miracle

MAPUTO, Mozambique -- In the Hulene quarter of this former Portuguese colonial capital, private minibuses swerve around holes carved in seas of mud. Metal sheets provide shelter for thousands packed in without electricity or sanitation. Illiteracy and HIV rates are shockingly high. The stench and deprivation take the breath away.

Mozambique is one of the world's poorest countries. It's also an African success story. Here, such things are relative.
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For all the debates over development strategies, the secret to Mozambique's recovery is simple. "We opened our markets and dropped the centralized economy," says Miquelina Menezes, who chairs the country's association of economists
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The payoff is the highest average growth rate, at 8% over the last decade, among the continent's non-oil exporters. GDP per capita is a still tiny $320, but that's compared with $178 in 1992. Since 1997, poverty rates decreased more in rural areas (from 71% to 55%) than in urban (62% to 52%), according to the World Bank. Child mortality has declined to 152 per 1,000 live births from 235. And primary-school enrollment has risen to 71% from 43%. Once a leading recipient of food aid, Mozambique now exports maize, with 5.6% average yearly growth in farming in the last 15 years. Banks, telecom and tourist firms, many from neighboring South Africa, have come in.